Global payments company American Express (NYSE:AXP) reported Q3 CY2025 results topping the market’s revenue expectations , with sales up 10.8% year on year to $13.82 billion. Its GAAP profit of $4.14 per share was 3.6% above analysts’ consensus estimates.
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Revenue: $13.82 billion vs analyst estimates of $13.45 billion (10.8% year-on-year growth, 2.8% beat)
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EPS (GAAP): $4.14 vs analyst estimates of $4.00 (3.6% beat)
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Adjusted Operating Income: $3.83 billion vs analyst estimates of $5.01 billion (27.7% margin, 23.6% miss)
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Operating Margin: 27.7%, up from 25.7% in the same quarter last year
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Market Capitalization: $238.8 billion
American Express delivered quarterly results ahead of Wall Street expectations, prompting a positive market response. Management attributed the quarter’s momentum to accelerating cardmember spending, a resurgence in travel activity, and continued strength in retail categories. CEO Stephen Squeri highlighted the recent refresh of the U.S. Platinum Card as a primary driver, noting that “initial customer demand and engagement are exceeding our expectations.” The company also pointed to excellent credit performance and stable delinquency rates supporting profitability.
Looking forward, management’s guidance is anchored by the company’s focus on expanding its premium product suite and investing in digital capabilities. Squeri emphasized that the refreshed Platinum Card, upcoming expense management solutions, and further international merchant coverage will be key to sustaining growth. CFO Christophe Le Caillec cautioned that while card fee growth will moderate before inflecting upward, ongoing investments in value propositions and marketing are designed to reinforce American Express’s goal of “delivering mid-teens EPS growth over the long term.”
Management credited the strong quarter to a combination of premium card momentum, increased merchant coverage, and targeted product enhancements. The Platinum Card refresh and digital initiatives stood out as central themes shaping both customer behavior and business fundamentals.
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Platinum Card refresh impact: The launch of the refreshed U.S. Consumer and Business Platinum Cards sparked a surge in new account acquisitions, with Squeri reporting that sign-ups doubled in the first three weeks post-launch. Engagement with new benefits and features, including a redesigned app, exceeded management’s initial expectations and contributed to higher transaction activity.
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Premium customer engagement: Millennials and Gen Z now account for 36% of total spend, matching Gen X’s share. These younger cohorts are transacting 25% more frequently than older segments, supporting strong growth in both card fees and merchant volume.
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Merchant network expansion: American Express has grown its global merchant coverage significantly, with Squeri noting nearly fivefold growth in the number of accepting merchants since 2017. This broader acceptance has made it easier for cardmembers to use their cards and for merchants to access higher-spending customers.
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International spend momentum: International markets delivered robust results, with three of the top five countries posting growth rates of 18% or more. Spend on Platinum Cards issued outside the U.S. rose 24%, highlighting the global appeal of premium offerings.
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Expense and credit discipline: Le Caillec emphasized that while investments in premium benefits and digital capabilities drive up expenses in the near term, credit performance remains strong, with delinquency and write-off rates below 2019 levels. This supports continued profitability and enables ongoing reinvestment in customer value.